Can Auto Insurance Companies Deny Coverage – Car insurance is something you cannot do without. You need it to drive because each state has its own minimum coverage requirements. You will need to show proof of car insurance to register your car, and again if you are pulled over or involved in an accident.
Clearly, auto insurance coverage is necessary, so why can auto insurance companies deny coverage? Below are three scenarios where this can happen along with some suggestions on what to do next.
Can Auto Insurance Companies Deny Coverage
· What can happen: When you apply for auto insurance, your application may be denied. Denial of coverage at the application stage is often based on your driving record. If you have a large number of fines or accidents, or if you have a DUI or other serious driving conviction, your insurance application may be denied.
Can I Sue An Insurance Company For Denying My Claim?
Other factors can also affect the rejection of the application. For example, if you live outside the insurer’s area of business, the insurer will reject your application. If you’ve let your insurance lapse in the past, these coverage gaps could be a problem. Depending on where you live, your credit score can also make a difference.
· What to do: apply for coverage from another insurer. Another insurance company may be willing to provide coverage, even if you have been denied a policy elsewhere. If a bad driving record is the reason for your refusal, taking a driving course can also help demonstrate that you are becoming a safer, more responsible driver.
· What can happen: Even if your initial application is approved and you purchase auto insurance, your coverage could be canceled. This can happen for several reasons. For example, if the insurer discovers that you lied or misrepresented the truth about your claim, you may be denied coverage. A common example of this is storage fraud. Where you live can have a significant impact on the monthly premium you pay. That’s why some people lie about their home address. This is known as storage fraud, and while some policies may see it as a white lie, it is considered a big deal in the industry and could cost you your coverage.
Driving violations can also result in coverage being revoked. This could happen if you accumulate several minor violations, such as tickets and minor incidents. It could also occur after a single, more serious violation, such as a DUI.
Auto Insurance Catch: Why They May Deny Your Repair Estimate
Non-payment of premium is another common problem. To maintain coverage, you must keep your premiums up to date. If you use automatic payments, make sure your financial information is still correct. For example, if the debit card you’re using expires, you’ll need to enter a new one.
· What to do: This scenario is easy to avoid. Be honest about your application and always pay your premiums on time. If you have coverage, be sure to keep it in place. Don’t give your insurer a good reason to cancel on you.
· What can happen: having valid car insurance does not necessarily mean that every claim will be covered. Individual applications may be rejected for various reasons. Some claims are rejected because they are not covered by the policy. For example, the driver may be excluded from the policy or the type of claim may not be covered. Drivers who use their personal vehicle for business purposes, such as driving for Uber, can also experience problems if they only have personal coverage.
Complaints will also be dismissed if a finding is involved. Claims investigators are trained to look for red flags that could indicate a claim has been staged or falsely reported. Fraudulent claims will not be paid and scammers could even face criminal charges.
Things You Should Know About Auto And Car Insurance
· What to do: Always read your policy and understand your coverage before being involved in an accident. If you are confused, ask your insurance agent for clarification. Buy the best coverage you can afford to maximize your protection. If you must make a complaint, be honest and upfront with the facts.
Has your auto insurance company denied you coverage? InsuranceLineOne offers many affordable car insurance options. Get online car insurance now. If you are seeking compensation for an auto accident, you should be aware that insurance companies can reject claims for a variety of reasons. Even if a driver is not at fault in a car accident, their claim may still end up being denied. Five reasons why insurance companies deny car accidents include:
Understanding the terms and scope of coverage under auto insurance is important for drivers and vehicle owners. If a driver engaged in certain behaviors that voided coverage, the insurance company will likely deny the claim outright. For example, driving under the influence of alcohol or drugs or texting while driving will almost always void your insurance. In other cases, if an accident occurred when an unlicensed driver was using the covered vehicle with the owner’s permission, that claim would also likely be denied. Finally, if the driver of the vehicle has violated the terms of his insurance policy, the carrier will not pay the claim.
Intentional facts aside, if there is a question about which driver caused the accident, the insurance companies involved may not agree on who is responsible for paying the claims. If the affected driver’s insurer believes that the insured is not at fault, they will try to hold the other driver’s insurer liable for the claim. This can also happen with the other driver’s insurer, resulting in back-and-forth litigation between insurance companies that can leave affected individuals in a bind.
The Question Of Coverage For Ride Service Drivers
Even if a driver thinks they were not injured after a car accident, they should still get a medical evaluation immediately after the collision. This is because some lesions will not appear or be felt until days or even weeks later. Without having a medical evaluation after the fact, it can be much more difficult to prove that the personal injury damages you suffered were a result of the car accident.
If a driver waits too long for an injury diagnosis and documentation to be submitted to the insurance company, the insurer may dispute whether or not it occurred in the accident, even in the event of a catastrophic injury. If the driver cannot prove that an injury was caused by the accident, the insurer may refuse to pay for treatment.
A driver should make sure their auto insurance policy matches or exceeds their overall needs. For example, if a vehicle is worth $100,000 and you have an accident with a driver who has $50,000 in coverage, your claim could be denied unless the driver has additional coverage. If the damage exceeds the affected driver’s auto policy limits, the claim will be paid up to the policy limits or the insurance company can deny it.
Insured drivers are responsible for notifying their insurance company immediately after an accident. California residents must notify their insurer within 10 days of a car accident if anyone involved is killed or injured; or if the accident caused more than $1,000 in damages. If the insurer is not notified promptly, whether or not an injury or death has occurred, the insurer may argue that they did not have adequate time to investigate the claim while the evidence was still available.
Reasons Why Insurance Companies Deny Car Accident Claims
If a traffic accident claim has been denied but the insurer has not given a reason, the insurer may be acting in bad faith. Bad faith basically means that an insurance company denies, underrates or delays a claim for unethical reasons. An insurer acting in bad faith has effectively breached the contract with the insurer and could face legal consequences.
Insurance companies can act in bad faith if a claim has been denied without legitimate reason if they make the process as slow as possible so that the insured cannot move forward, or if they drastically underestimate the claim without any explanation of the reason.
Dealing with an insurance company after a car accident is the last thing you want to deal with. While many requests can be processed and paid without issue, just as many are rejected, some without reason. If you or someone you know has been involved in a car accident and your claim has been wrongfully denied, a California car accident attorney can review and explain your legal options. At Curtis Legal Group, our attorneys charge no upfront fees and we offer free comprehensive case reviews. Contact our office today for more information on how we can help you recover what is owed to you after a car accident. Insurance can be a confusing subject. We might think that the auto insurance industry has done it to itself with commercials that emphasize anything but the absolutely necessary for most customers and their families. What do you actually need to know? It seems like it could all be a huge secret. This article may help
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